(2018-02-02, 07:18 PM)Hugues Wrote: I just got some news from an insider.
Most of the exchanges work with Tether to convert cryptos into USD.
It seems when you sell cryptos on an exchange yoy get Tethers and not USD.
It is when cashing out to you bank account that it is converted to USD.
Now there are some rumors that this TETHER is a scam. They claim that every TETHER is backed by a USD, but it nowhere to verify.
Have a look at this: https://medium.com/@bitfinexed

If this is true, I believe a few exchanges are going down and will stop existing.
Be warned: If you have some cryptos in an exchange account, get them out ASAP and store them in a wallet.

(2018-02-02, 07:18 PM)Hugues Wrote: I just got some news from an insider.
Most of the exchanges work with Tether to convert cryptos into USD.
It seems when you sell cryptos on an exchange yoy get Tethers and not USD.
It is when cashing out to you bank account that it is converted to USD.
Now there are some rumors that this TETHER is a scam. They claim that every TETHER is backed by a USD, but it nowhere to verify.
Have a look at this: https://medium.com/@bitfinexed

If this is true, I believe a few exchanges are going down and will stop existing.
Be warned: If you have some cryptos in an exchange account, get them out ASAP and store them in a wallet.

(2018-02-05, 08:37 AM)Carsten Wrote: The exchanges should right now go back to USD. If they want to keep USDT it's fine, but pr. default USD should be the choice when selling for USD.

I don't know if it is that easy for them to do so. If they don't and USDT falls down to zero they will go bankrupted and lots of people will be bankrupted too. If that's the case crypto currencies will lose a lot of trust and all will fall back to a very low value. It would take a long time to come back. This is something I (we) have never foreseen. Last week I had in mind the crash was going to end soon, but right now I don't now...

One of the problems with Tether is that it has propped up the price of Bitcoin, and by extension, the cryptocurrency market. Every time Bitcoin has fallen, they have released new Tethers and bought Bitcoin. Now that there is intense scrutiny on Bitfinex, they haven't released any new Tethers in the last 6 days, and there is no longer that cushion to stop Bitcoin falling.

What would be truly diabolical is if Btifinix released new Tethers (fake fiat), bought Bitcoin with those Tethers and caused the price of Bitcoin to go up, and then sold the Bitcoin for USD (real fiat) when the price was sufficiently high.